How much under ask did you offer?

posted 4 months ago in Home
Post # 2
Member
1230 posts
Bumble bee
  • Wedding: September 2015

The housing market is extremely competitive where I am. We saw our house at an open house the first day it was on the market and made an offer 30 mins after seeing it. Because it’s competitive we had to offer over asking (we offered $5K over). We were one of five offers from the open house. 

Post # 3
Member
944 posts
Busy bee

tillymac :  We offered asking price with seller providing all closing costs and insurance for a year. They declined, but called us back the next day to accept. They were motivated. 

I think the biggest thing to be aware of is what the market is like in your area and how long a house has been on the market. You can typically get away with offering less if the house has been on the market 60-90 days vs 30 days or less. My little sister has put in offers for 10 houses in Oakland area and turned down because other offers were better. Cash only, over asking price, etc. 

Post # 4
Member
2333 posts
Buzzing bee
  • Wedding: November 1999

tillymac :  Our first houses we got for under the asking price but our last house was so cheap that we knew we had to play hard to secure it.

Its not just price that you can play with as a purchaser. With our last house we only offered 1k over asking price.  we used that we were a cash buyer therefore not subject to finance. We had no chain and  could do settlement at whatever date suited the seller. The seller needed our offer  to secure a bigger loan to then proceed with the purchase of their next house.

My point is that you can use other things to negotiate with. Good luck and I also recommend that you ask for council approved plans as part of your contract. Lots of illegal building works happen that are not  approved. We realised that an extension had been put on our house. It was touch and go until we got the plans from council that stated it was legal. If we then knowingly sold on the house knowing that illegal works had taken place, we could have been liable. Its also costly and hard to get post building approval where I live.  We always do offers subject to finance, building inspection, termites and council plans. We never want to go through that worry again with illegal building works.

Happy house hunting!

Post # 5
Member
806 posts
Busy bee
  • Wedding: June 2016

Completely depends on the housing market in your area. Both my sisters just bought in hot markets. One offered and paid 25% above asking (probably her 8th offer, two precious went for 40% above asking!!!) and the other was probably 5-10% above asking. Both houses were bought within 48 hrs of being listed.

best friend in slightly cooler market put an offer on a house that had been listed for nearly 8 months. I think she offered about 15% below asking but accepted house “as is” – luckily she was given inspection info from a previous bidder so knew what she was getting (roughly). 

 

so it totally depends on the market, how long the house has been listed, what it’s offer history has been, etc

Post # 7
Member
1415 posts
Bumble bee
  • Wedding: June 2014

Depends on where you live. Here the market is competitive so you can expect to pay more than asking price – and there are often bidding wars. We decided to shelf our house buying because of this. Even run-down fixer uppers are going for more than asking. We’re still saving. 

Post # 8
Member
505 posts
Busy bee

tillymac :  If you’re in the US, the condition of the home might not be suitable for typical financing if there are roof repairs/replacement needed. A roof replacement on our old home was several years ago and was $15-20k.  A new kitchen is easily $20k if a modest size and that’s not considering the bathroom. The $3k estimate seems really unrealistic. I would factor the cost of repairs/renovations into your offer.  

$245k soundslike a bargain from someone in a hot market, but ultimately it depends on your market.  Your real estate agent should be able to pull comparable listings and comment on factors that will impact value i.e.  condition, square footage, lot size, etc to give you a realistic picture of your market conditions and the property’s value. 

Post # 9
Member
1002 posts
Bumble bee
  • Wedding: May 2014

Our house was listed at $122,700. We paid $5k over asking ($127,700) in order to beat out an offer that was for asking price. It was/is a fixer upper, but starter homes in our area are hard to find and sell easily.

My parents offered 16% under asking on their house because it needed so much work. It was accepted after a few months (they walked away & then were called later). But they were prepared to lose out on it.

Post # 10
Member
210 posts
Helper bee

It really depends on the market. Where I am, homes are going 30-60k over asking. Including fixer uppers and houses that need 100k plus in work just to be liveable. They also sell within 72 hours… with that being said we were able to find a house that fell through the cracks, and is a short sale- we offered 20k under asking and are in contract. If the realtor would have had an open house I know the house would go for 80k more than we’re in contract for!

Post # 11
Member
528 posts
Busy bee

Before we made an offer, our realtors sent us comparable sales in the area for the past 6 months as well as an expanded listing that showed us the sale history of the house. We always knew how much the house was bought for and how many times it was on the market and if the price had been decreased in the past before we calculated a price. There are certain neighbourhoods where I am that we asked over and others where we could negotiate. Our realtors always recommended going in at price that would result in us negotiating halfway to our end price (if that makes sense – if a house was listed for 215 and we wanted 200 we’d go in at 175). Of course, your realtor will have a better idea on this based on the area.

Post # 12
Member
5067 posts
Bee Keeper
  • Wedding: June 2015

tillymac :  We offered $10000 under the asking price if I remember correctly, maybe 15.  They didn’t agree, we stepped up to the original price again.  Then the home got inspected and lo and behold, was valued at the price we originally offered, so they had to drop back down or not sell.  I believe in the end it was 235.

Post # 13
Member
524 posts
Busy bee

I’d refer to your agent. Homes in my area are going $30k+ over asking. Doesn’t even matter if it needs a lot of work. It depends completely on the market.

Post # 14
Member
1757 posts
Buzzing bee
  • Wedding: July 2009

I agree with PP. New roof on our house was $10k  New kitchen was $10k (we did most of the work, hired out floors and counters). New bathroom, assuming just cosmetic could be $1-3k. $3k won’t even cover appliances.

When we bought, we offered and were accepted at $30k below asking. But, sellers had another house and my house needed major updates/repairs. In my area, houses are now selling for $10k over asking and spending very little time on the market. 

 

Post # 15
Member
1661 posts
Bumble bee
  • Wedding: September 2012

We just closed on our house 2 weeks ago, on our old house the buyer offered $5,000 over asking. We had another offer the same day for asking price. 

On our new house, it was built in 1991 and looks very 1991, there weren’t any offers coming in so the buyer was going to hire somebody to take down all the horrible 90s wall paper. We offered $14,000 under asking and asked her to keep the wall paper up (we’ll take it down ourselves). We fully expected a counter offer, but she accepted it. She’s an older lady and had met us and knew we are a young family, she said she wanted a family living here since it’s where she raised her kids. 

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